In Case of Deferred Revenue Liabilities,revenues Should Almost Always Be

question 27

Multiple Choice

In case of deferred revenue liabilities,revenues should almost always be recorded as earned when:

• A)the company receives an order for delivery of the product or the performance of a service.
• B)the company is reasonably sure that the product can be developed and delivered.
• C)the service is performed or the product is shipped.
• D)the company receives cash for the service to be performed or the product to be delivered.

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Definitions:

Agent

An individual or entity authorized to act on behalf of another person or entity, typically in business transactions, creating a legal relationship called agency.

Independent Contractor

A person or entity contracted to perform work for—or provide services to—another entity as a non-employee, which means they have greater autonomy in how they complete their work.

Excavation Work

The process of removing earth, rock, or other materials in a site to form a cavity or hole.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for any resulting damages.